European Stocks Rise as Kering, Credit Suisse Climb on EarningsBy
European stocks extended their winning streak into a sixth day, boosted by strong earnings from companies including Kering SA and Credit Suisse Group AG.
The Stoxx Europe 600 Index added 0.5 percent at the close. The benchmark index is up 2.8 percent this week in the biggest three-day gain of the year amid a rally sparked by optimism over the first-round results of the French presidential election.
- Luxury-goods maker Kering surged 9.7 percent, leading retailers to the best performance among Stoxx 600 groups, after first-quarter revenue far exceeded analysts’ estimates.
- Among lenders, Credit Suisse climbed 2.7 percent after announcing a funding plan and higher earnings, while Standard Chartered Plc advanced 4 percent after its quarterly profit topped estimates.
- Overall, European banks are expected to increase profits by about 16 percent this year, data compiled by Bloomberg show.
- Utilities underperformed the broader market, with Iberdrola SA down 1.2 percent after Spain’s largest power company reported a drop in earnings.
- While banking shares surged this week after the French vote dispelled worries about threats to euro-area stability, they still trade below book value. On that basis, they are near their cheapest prices relative to U.S. peers since 1980, according to strategists at Barclays Plc.
— With assistance by Elena Popina